The impact of car failures on the global economy far exceeds that of Citi

As a symbol of the outbreak of the "2018 Global Great Depression", the bankruptcy and collapse of General Motors has gone down in history...... On July 211, the three major stock markets in New York collectively dived, and the Dow Jones index fell from 17,432 points at the opening of the 20th to 1 point at the close of trading on the 24th, a decline of 752%.

Overnight, decades of savings for millions of American families turned into waste paper.

The bankruptcy of General Motors directly caused 2.11 million employees to lose their jobs and nearly 2 million workers in more than 20,000 related companies lost their jobs.

Compared with the direct ~ sound, the indirect impact is more terrifying.

Chrysler Motor Company, Ford Motor Company, and General Motors Co. are facing the same problem, and if they are not sold to a "strong" competitor as soon as possible, they will both declare bankruptcy within the year.

Compared to 2009, there is hardly anyone like the U.S. government will come to the rescue of General Motors, which has declared bankruptcy.

Frederick was also undecided when it came to saving General Motors.

The key to saving GM and even the U.S. industry is not how much money the government spends on it, but to remove trade barriers to electric vehicles and electric vehicle parts as soon as possible, so that the U.S. auto industry can obtain high-quality and low-cost electric vehicle parts and sell them, and promote popular electric vehicles in the U.S. market in the form of OEM production and contract sales. Removing trade barriers requires not only the president's approval, but also congressional approval. Under the circumstances, there was little hope that the U.S. Congress would quickly approve the lifting of trade sanctions.

If the United States lifts trade sanctions on electric vehicles and electric vehicle parts, it will be tantamount to "surrendering" to China.

Let's not talk about face for the time being. : A large number of electric products are pouring into the U.S. market. China will be the biggest beneficiary. Other industries in the United States will be dealt a fatal blow. Don't say anything else. With the successful maiden flight of an all-electric regional airliner in 2018. If the market is opened. Boeing will be the second victim.

If Boeing closes. The impact will be 100 times more serious than that of General Motors!

Ultimately. Frederick made a "painful choice".

Give up saving GM. Full support for Ford and Chrysler automobiles.

Then. Frederick could only pin all his hopes on the "domestic" composite battery in the United States. If it is possible to manufacture a composite battery by the end of 2018. The United States has the ability to catch up with China in battery technology. Implement a plan for upgrading domestic industries similar to China's "industrial restructuring". Save the U.S. economy.

In the long run. Frederick's decision was not wrong.

In the future competition, the international competitiveness of the two American automobile companies will not be much worse than that of the three American companies. The U.S. government can make more effective use of scientific research funds to get the two auto companies out of the predicament as soon as possible.

At the end of the year, when the court ruled that GM was bankrupt and collapsed, the R&D departments of Ford and Chrysler had already obtained samples of composite batteries and were working on the development of "all-electric vehicles with independent intellectual property rights." Subsequently, the U.S. government also financed Ford and Chrysler's acquisition of GM's marketing network and patented technology in the form of "guaranteed loans".

Yes, there is no way to prevent the global economic crisis caused by the bankruptcy of General Motors.

By the end of 2018, a total of 287411 companies in the United States declared bankruptcy, and the total amount of assets liquidated exceeded one trillion dollars, and the United States paid 30 trillion losses for this, which is equivalent to an average American paying $1 for this!

In August, the European economic crisis erupted with the declaration of bankruptcy of the French Citroën-logo automobile company.

Although at the time of bankruptcy liquidation, the French government approved the acquisition contract of Citroen-Mark Automobile Company and China's Dongfeng Motor Company with a total value of 75 yuan, Dongfeng Motor Company promised that within the next 0 years, not only will all Citroen-Mark cars sold in Europe continue to be produced in Europe, but also some Dongfeng Company's electric vehicle production lines will be transferred to Europe, creating at least 250,000 jobs for France and other EU countries. But the liquidation of the Citroën-Mark car company still has a serious impact on the entire European Union.

At the end of August, the century-old Rolls-Royce (Rolls-Royce) car company declared bankruptcy.

The already sluggish economy led to a one-year decline in luxury car sales, and several car factories in the republic launched luxury electric cars with composite batteries in early 2018, causing Rolls-Royce to run into difficulties and finally had to declare bankruptcy when its debt reached 21.1 billion euros.

By the end of 2018, with the exception of Germany's Volkswagen-Benz AG (Volkswagen AG merged with Mercedes-Benz AG in June 2018) and Italy's Fiat AG, other European car companies had either declared bankruptcy, been acquired by Chinese car companies, or entered into joint ventures with Chinese car companies.

Because Europe has adopted a more "open" trade policy, the signs of the European economic crisis are not obvious.

It wasn't until January 20199, as more and more companies declared bankruptcy, that the European economic crisis entered the "**". Because the process of political integration in the EU is slow, it varies from country to country

Europe has been further affected by the failure to adopt effective policies to deal with the economic crisis.

At the end of 2018 alone, the unemployment rate in France exceeded 1, Germany reached 12%, and the UK was 17%.

The immediate consequence of the economic crisis is political instability.

At the beginning of 20199, Italy's prime minister first resigned and announced early elections. Subsequently, the ruling parties of the governments of France, Britain, Germany, Spain, the Netherlands and other countries were either forced to resign early or became opposition parties in the local elections. Almost all of the new arrivals are right-wing or center-right parties.

In January 2018, Brazil's Vale announced that it would accept the capital injection of the "Three Groups", and the "Three Jian Group" invested 255 yuan to acquire % of the company's shares, plus the 1C% of the shares previously held, becoming the largest independent shareholder of Vale, becoming the first symbol of the economic crisis spreading to the new economy.

As early as the end of 20117, "Sanjiantuan" became the world's third largest resource enterprise.

The purchase negotiations between "Sanjian Group" and Vale began in August 20177, and +Yanbo initially offered to acquire 57%: shares of Vale for 180 yuan, becoming the controlling shareholder of Vale. Vale only promised to sell 39 percent of its shares to the Sanjian Group for 380 yuan.

Negotiations have been going on for January, and although progress has not been rapid, the differences between the two sides have been narrowing.

General Motors' Citroën-Logo has declared bankruptcy, which has had a very serious impact on Vale. The automobile industry is the largest consumer of resources, and it is also the main downstream manufacturer of steel and motor aluminum. In the context of the recession in the automobile industry, the outlook for Vale, which mainly mines iron ore, is naturally sluggish.

Prior to the agreement between the two parties, Vale's debt-to-asset ratio had exceeded the warning line of 120%.

That is, if the negotiations break down, Vale will file for bankruptcy protection by the end of the year.

After the completion of the merger, the "three groups" have become the world's largest resource enterprises.

Just because Vale has survived the crisis does not mean that other companies in the emerging economies have survived.

By the end of 2018, more than 30,000 companies in Brazil, Russia, India and other countries had declared bankruptcy, and unemployment rates in all countries exceeded 15%, including 27% in India.

As the "defeated country" of the Fourth Indo-Pakistani War, India is in the worst situation.

When the economic crisis erupted, a large number of US-aided projects were either just starting or were not yet completed. The United States can only reduce its aid to India when it is unable to protect itself. In the second half of 2018, not only was Santos forced to resign, but the new Indian prime minister also adjusted India's economic development plan three times in three months. This shows how serious India's domestic economic problems are.

The high unemployment rate has not only led to a rapid contraction of consumer markets in various countries, but also led to a sharp decline in the standard of living of the people.

In the absence of unanimity, almost every country can only continue to raise the trade threshold, as much as possible other countries' goods, desperately trying to sell their own goods to the world.

The global economic crisis quickly turned into a global Great Depression.

With the exception of the republics, which have been forging ahead in a difficult situation, the performance of several major economies can be considered "unique".

After the East China Sea War, soldiers entered the Japanese political arena and became the de facto rulers of Japan. The ensuing global financial and economic crisis gave the Japanese military government the opportunity to expand its armaments and stimulate economic development.

In 2018, Japan's military spending reached 235,400 won (about 1,278 won at the yen exchange rate in December 2018), an increase of 43% from 20177 (only 29% in US dollar terms). In the 20199 budget approved in December 2018 (in the past, Japan's fiscal year began every year, but after the military took office, it was changed to January), the military budget reached 376,500 won (about 2,038 yuan), an increase of 595% from 2018, accounting for 39% of the total fiscal budget for the whole year, and 17% of Japan's GDP in 2018. Japan's local budget deficit is expected to reach a staggering 218% this fiscal year.

Supported by a frighteningly high military budget, Japan's economy has been very "strong".

In order to cope with the huge military spending, the Japanese government not only announced at the end of 2018 that the Self-Defense Forces would be changed to a "national defense force", but also announced the "military development plan for 20199 to 2025", which clearly proposed to establish an ocean-going fleet with aircraft carriers as the core, build the most powerful air force in the Asia-Pacific region, and an army sufficient to carry out combat missions in the surrounding areas.

Although Japan has not announced that it will build nuclear weapons or nuclear-powered ships, the whole world knows that Japan has embarked on a militaristic path and will sooner or later expand again.

The economic crisis that turned into the Great Depression was certainly not only an economic catastrophe in the end.

Whether it is the game between China and the United States, or Japan, which is about to move, or India, which continues to find a way out, or Iran, which is fighting the US military with all its might, will all take some extreme measures that have a serious negative impact on world peace and stability in order to ensure their own interests under the influence of the global Great Depression.

War, all that is lacking is time! (To be continued)

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